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Absenteeism in Northern Ireland Councils 2009-10

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Absenteeism in Northern Ireland Councils 2009-10 Absenteeism in Northern Ireland Councils 2009-10 REPORT BY THE CHIEF LOCAL GOVERNMENT AUDITOR 26 November 2010 This report has been prepared under Article 26 of the Local Government (Northern Ireland) Order 2005. John Buchanan Chief Local Government Auditor November 2010 The Department of the Environment may, with the consent of the Comptroller and Auditor General for Northern Ireland, designate members of Northern Ireland Audit Office staff as local government auditors. The Department may also, with the consent of the Comptroller and Auditor General for Northern Ireland, designate a local government auditor as Chief Local Government Auditor. The Chief Local Government Auditor has statutory authority to undertake comparative and other studies designed to enable him to make recommendations for improving economy, efficiency and effectiveness in the provision of services by local government bodies and to publish his results and recommendations. For further information about the work of local government auditors within the Northern Ireland Audit Office please contact: Northern Ireland Audit Office 106 University Street BELFAST BT7 1EU Telephone: 028 9025 1100 Email: [email protected] Website: www.niauditoffice.gov.uk © Northern Ireland Audit Office 2010 Contents Page EXECUTIVE SUMMARY 3 Scope of the report 4 Main findings 5 REPORT 9 Absenteeism within councils 10 Absenteeism for the sector as a whole 18 Causes of absence in councils 26 Absenteeism policies in councils 29 Absenteeism targets in councils 30 Absenteeism data in councils 32 CONCLUSIONS 35 APPENDICES 37 Appendix 1: Potential gains in productivity for each Northern Ireland council (2007-10) if the lowest absenteeism rate was equalled 38 Appendix 2: Change in annual productivity for each Northern Ireland council resulting from a comparison of 200 4-07 and 2007-10 absenteeism rates 39 Appendix 3: Commentary on Northern Ireland councils’ three-year average annual absenteeism rates 40 1 Absenteeism in Northern Ireland Councils 2009-10 Executive Summary Absenteeism in Northern Ireland Councils 2009-10 Executive Summary Scope of the report In accordance with Article 26 of the Local Government (Northern Ireland) Order 2005, the Chief Local Government Auditor requested absenteeism data from each of the 26 district councils for the year ending 31 March 2010: • numbers of absences; • duration of absences; • numbers of full time equivalent employees; • potential working days available; • causes of absenteeism; • absenteeism policies; and • absenteeism targets. Unless otherwise stated the analysis contained in this report is based on the data provided by the 26 councils. 4 depression, mental health and fatigue. This is more than Main findings four times the rate of stress-related absence recorded in Magherafelt District Council, Fermanagh Absenteeism within councils District Council, Dungannon and South Tyrone Borough Council and Armagh City and District • Magherafelt District Council had the lowest average Council (paragraph 14). annual absenteeism rate of 7.91 days for the 2007-10 period. Had all councils matched the lowest average • Further commentary on each council’s three-year annual absenteeism rate, a total of £6.2 million a year average annual absenteeism is at Appendix 3 could have been gained in productivity (paragraphs 3 (paragraph 15). and 8). • Variations in absenteeism rates between councils, • Average annual absenteeism rates for four councils and the proportion of this attributable to stress- were more than double the rate recorded in related absence, appear to have no discernable Magherafelt District Council for the 2007-10 period. pattern. One factor which does vary between These were Craigavon Borough Council (17.99 councils is the management of absenteeism. We days), Derry City Council (17.15 days), Carrickfergus recommend that councils with high and rising Borough Council (16.90 days) and Ballymoney absenteeism rates should review their own Borough Council (16.28 days)(paragraphs 3 and 4). management practices and benchmark these against those councils with low and falling absenteeism rates • Down District Council had the largest increase in (paragraphs 18, 19 and 20). average annual absenteeism rate. The rate of 14.79 days recorded for the 2007-10 period is 4.92 days or • The most frequent change in council practices, almost 50 per cent more than the 2004-07 rate of where reductions in absenteeism have been 9.86 days. This represents an average annual sustained over a period of years, is the increased productivity loss of £190,000 for the Council. No involvement of both senior and line management in other council experienced a productivity loss over the oversight of absenteeism (paragraph 21). the two periods in excess of £100,000 (paragraphs 5 and 12). • Of the 18 councils showing an improvement over Absenteeism for the sector as a whole the two periods, Cookstown District Council • The 26 Northern Ireland councils employed a total improved the most with a significant reduction in its of 9,841 full time equivalent staff in 2009-10. During absenteeism rate of 5.4 days from 14.20 days in this period almost 122,000 working days were lost 2004-07 to 8.80 days in 2007-10 (paragraphs 6 as a result of sickness absence. This represents an and 11). average absenteeism rate of 12.39 days, or two and a half weeks of absence, for each employee during • Improved absenteeism has led to Lisburn City 2009-10 (paragraph 26). Council gaining £1.4 million in additional productivity since a peak absenteeism rate in 2000- • The 2009-10 absenteeism rate reflects a marginal 03. From 2002-05 Belfast City Council and Newry reduction of 0.04 days when compared to the 2008- and Mourne District Council have gained £2.7 09 rate of 12.43 days. This absenteeism rate for all million and £1.4 million respectively as a result of Northern Ireland councils is now lower than any steadily reducing their absenteeism rates (In focus annual rate recorded this decade and is a reduction analysis pages 17, 25 and 33). of 2.28 days (16 per cent) from the peak recorded in 2002-03. Increased staff efficiency will be particularly • In Ballymoney Borough Council, 46 per cent of total welcome for councils given the current economic days lost due to absenteeism was caused by stress, climate (paragraph 27). 5 Absenteeism in Northern Ireland Councils 2009-10 Executive Summary • The level of absence due to swine flu in Northern Causes of absence in councils Ireland councils during 2009-10 was relatively low and had only a small impact on absenteeism, • In 2009-10 all councils reported summary accounting for one per cent of the total absenteeism information on the causes of absence, and for this reported. The 2009-10 absenteeism rate in report we modified the classification to take specific Northern Ireland councils would have fallen by a account of absences in 2009-10 as a result of swine further 0.12 days to 12.27 days had absences caused flu (paragraph 45). by swine flu been excluded (paragraph 29). • While stress, depression, mental health and fatigue • Increased staff costs of £19 million in 2009-10, when remain the largest cause of days lost due to combined with the marginally reduced absenteeism absenteeism (22 per cent), the 2009-10 figure rate, have increased the cost of lost productivity due represents a one per cent reduction from the to absence in Northern Ireland councils by £0.9 previous year. Lost productivity due to stress- million from £15.5 million in 2008-09 to £16.4 related absenteeism has risen from £3.5 million in million in 2009-10 (paragraph 30). 2008-09 to £3.6 million in 2009-10 as the falling rate has been offset by increased staff costs. Absences • Reflecting the reduction in the absenteeism rate for due to this cause of illness last more than five weeks the sector as a whole, annual absenteeism rates for on average (paragraphs 46 and 51). 2009-10 fell in 15 councils when compared to 2008- 09 (paragraph 31). • There was little variation in the causes of absence in Northern Ireland councils between 2008-09 and • Across Northern Ireland councils, 42 per cent of full 2009-10 (paragraph 48). time equivalent employees (4,169) had no absence during 2009-10. This is a marked increase from the 40 per cent recorded in 2008-09. For twelve councils Absenteeism policies in councils the proportion of full time equivalent staff with no absence increased year-on-year over the 2007-10 • All councils have a written absenteeism policy with period (paragraph 33). the exception of Magherafelt District Council. However, we recommend all councils including • Although the absenteeism rate for Northern Ireland Magherafelt District Council should establish written councils is lower than both the Northern Ireland absenteeism policies which are subject to councillor Housing Executive rate and the Northern Ireland approval and published for the benefit of ratepayers, Health Service rate, it is higher than the latest electors and council staff. We recommend that available Northern Ireland Civil Service rate councils monitor adherence to their policies and (paragraph 34). revise them when necessary (paragraphs 53 and 55). • In 2009-10, long term absence in councils represents • The number of councils periodically informing staff 67 per cent of the total time lost due to of absence levels has increased from 20 in 2008-09 absenteeism and costs £11 million in lost to 21 in 2009-10. It is our view that councils should productivity. We recommend that particular make all staff aware of absence statistics on a attention is paid to the management of long term regular basis to emphasise the importance of absence when councils benchmark their absenteeism absenteeism and the effect it has on council management practices (paragraphs 42, 43 and 44). services (paragraph 57). • 21 councils have implemented a stress or mental health policy.
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